Apr
13
The poor Indian farmers
Obviously, it sounds like a sympathetic move, showing off, how careful Indian ministry is for the Indian poor and how much they are looking for the development. The great economists P. Chidambaram never sought for the after affects of this move, nor considered if there was any reasonable base to provide such loan waivers to any of the farmer, and P.M ManMohan Singh fully supported the move.
It all again shows how manipulatively politicians use the economy for the mere political gains.
As a matter of fact, this or any of such loan waiver is unlikely to address any of the fundamental problems facing poor farmers, and comprehending the Indian basic electoral policies, the loan waiver has no significance, yet it is a strong symbol which is designed to woo the poor and gullible voters for the upcoming elections next year.
52% of Indian workforce is dependent on agriculture for its livelihood and agriculture contributes 18.5% of the gross domestic product.
There are almost negligible efforts and investments by the government for any planned and intelligible program to actually help the poor small scale farmers.
Agriculture accounts for the livelihood of 52% of the country’s workforce and contributes 18.5% of the gross domestic product
India’s current economy of 8.7% GDP growth is amongst the fastest in world, obviously it is impressive, yet, it shows only one side of the coin. The agricultural estimated growth is miserable 2.6% even in this financial year. The incomes of small farmers are not maintaining rate of knots with rising production costs in a nation where the government fixes many farm-produce purchase prices, thanks to the socialistic platform of Indian subsidy-system…
Now this waiver will be considered as government’s investment in the agricultural sector.
As a matter of fact, all this huge money of $15 billions is just used as a political gimmick to woo voters for next general elections and it is NOT at all going to help or develop the agricultural sector, although, it will harm the poor inadvertently.
Many people will see it as a help for the poor Indian farmers, but as a matter of fact it is not.
When farmers were at extreme ends, when they were committing suicides at high rates, no such loan waiver came into force, then why now? It is pretty clear, that this money is not at all going to be used for any progressive means.
The gullible Indian voters, won’t even think of from where all this huge money will come from?
Yet above all this, a major and very pertinent question has been left over unnoticed by the finance ministry of India. What about those farmers who have paid up their loans honestly?
While everyone has a great sympathy for the impoverished poor drought torn farmers, isn’t it that our finance minister is making those farmers who paid their loans on-time to look like big idiots? Isn’t the finance minister just encouraging the financial indiscipline of greatest order? Wouldn’t the same impoverished farmers, who will now be taking fresh new loans, expect the same relief when they default on their new loans?
Moreover, what is the guarantee that the really needy farmer will get its loan waived off and the clergy of Indian bureaucracy and the clerics won’t eat up all the loan waivers by promoting their chosen beneficiaries?
This (so-called) investment of government to help Indian agriculture is not only highly unlikely to bring any relief for the extremely fragile Indian agricultural sector, but also it won’t be helpful for the farmers who are actually in need. Yet, it will do that for which it is aimed for, the loan waiver may woo a lot votes for the present coalition government in the next elections, will bring about a high chance for further bribery and cheating and will burden the common Indian income providers adversely because all this money is coming at the expense of Indian citizens, and is been used for the promotion of electoral campaign for the upcoming elections by the government.
The government fixes the price of the agricultural products (and not the farmers who produces it), the government needs to address more basic problems such as farmers getting better prices for their produce. It will not only help the farmers to gain better profits and prices, but also let them have their share with pride, but government won’t do it, it won’t let the farmers to ask for their right with pride, it will keep showing of same charity, sympathy acts of economic loan waivers corrupted by political motives.
Surely, these politicians are the great magicians of today’s era. They decide the good or bad luck for the poor. Obviously the farmers who honestly paid their loans back are having bad luck, and those who defaulted either by will or because they couldn’t pay are having their good luck. Many fake people will also get benefited to further get more loans and default again and the hard earned money of Indian citizens will be used up by these magical politicians for their political motives.
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15 Responses to “The magicians of today’s era”
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Rashi V Says:
April 13th, 2008 at 1:11 pmEconomics has always been used as a tool of control and thats what we see all round today…
The waiver of the loans was a really just a gimmick and most people probably can see through it. Lets see what the future holds
arjun Says:
April 13th, 2008 at 6:59 pmElections coming , so we can expect all such gimmicks….
Pity…
Cheers..!!
Arjun
unpretentious_diva Says:
April 13th, 2008 at 7:26 pmWhat about those farmers who have paid up their loans honestly?
While everyone has a great sympathy for the impoverished poor drought torn farmers, isn’t it that our finance minister is making those farmers who paid their loans on-time to look like big idiots? Isn’t the finance minister just encouraging the financial indiscipline of greatest order? Wouldn’t the same impoverished farmers, who will now be taking fresh new loans, expect the same relief when they default on their new loans?
Moreover, what is the guarantee that the really needy farmer will get its loan waived off and the clergy of Indian bureaucracy and the clerics won’t eat up all the loan waivers by promoting their chosen beneficiaries?
The better and real way to help out farmers is to provide agriculture a private business sector status and let the farmers and the farmers organisations to decide the price for farmer’s hard work and its product.
Subsidies are actualy like a two-ay swords which will keep cutting heads on both sides.
The sucking socialistic statism of Indian politics and economy is burdening the poor more than anything else can, the only solution for such gimmicks is striving for free-market economy with no hold of politics on economy.
Laissez-faire principle alone can provide a relief for the hard workers.
India needs to forget the bufoonery of keynese and adapt the wisdom of Ludwig Von Mises and Rothbard.
ArUn raFi Says:
April 13th, 2008 at 8:10 pmhey nice observations..i have a similar post on my blog..plz chek tht out at http://arcaneblog.blogspot.com/2008/03/60000-cr-budget-waiver-for-good-or-for.html
ArUn raFi Says:
April 13th, 2008 at 8:16 pmand for those who have paid th loans,u cant return their loans as such so its far better to give them some spl status that qualifies that small percentage to have some additional facilities like subsidized loan rates than what others are provided with..so tht they dont feel unfair..i think that can be done..considering tht the people who paid the loans are registered and are not tht much of a problem to find out..rather than empathising with those who have paid..
reward them,recognise them, so that everyone gets motivated , so that there is no cribbing about the fact that the people who got their loan waived dont get motivated to not to pay loans again..
unpretentious_diva Says:
April 13th, 2008 at 10:12 pm@arun
and do you know from where the money comes?
it comes from the citizens hardwork.
to provide money for farmers means taking money from your father (and you if you are working)by means of income tax or sales tax, it means inflation.
Do you exempt money back from your friends after lending them money?
How much money you have wasted like that till now?
Anti Bookworm CEO Says:
April 13th, 2008 at 11:06 pmNice debate guys
Everyone has to agree with the ‘unpretentious diva’ cause.. Farmers comitting suicide had been a set back to the govt. Loan waiver scheme is just foolish.. What if ppl from other proffesions follow the suicide path and call themselves matrons cause their followers ll get money.. I’v a lot of respect for our finance minister but i’m sure its not his sole decision. The ruling party has a big role in this scheme.. The bottom line is our politics “sucks”
Benji Says:
April 13th, 2008 at 11:56 pmI’m not much of a politicist (iszzere a word like that) or an economist. But to me Chidambaram is one of the more sensible politicians out there and I dont think this was an election gimmick.
unpretentious_diva Says:
April 14th, 2008 at 12:07 amno matters it was gimick or not, but it was wrong.
and you dont need to be a politician or economist.
It is your money (if you actually work and earn) which is misused and squandered by the idiots like P chidambaram.
Benji Says:
April 14th, 2008 at 12:49 amAs a non-expert I guess I tend to look at it very superficially. Your thoughts about farmers who have always paid are quite valid and makes sense to me. Anyway - time will prove the sensibility of Mr. Chidambarams move.
unpretentious_diva Says:
April 14th, 2008 at 1:12 am@benji
even Chidambaram canot explain or prove his move’s worth.
anyways, I can understand your appreciation for a politician whom you favour, and it is your right, but without reasonable base, faith is ****.
Anti Bookworm CEO Says:
April 14th, 2008 at 2:52 am@ diva
Ur not gonna sleep till Chidambaram waives the waiver scheme off?? ;)
Love life Says:
April 14th, 2008 at 9:13 pmOne of the major issue that peopel don’t understand that the two pillars of democracy which are constitutional democracy,the judiaciary enjoys very reputable sight in the institution,the popular democracy,i.e.,the electoral policy is palgued by myopic viewpoint of leaders who havbe always that a environment can only be a cause for their survival,which had always led to short term and illusionary policies to come in effect.
manorath Says:
April 15th, 2008 at 1:00 pmhmm.. i was holdin a high opinion on chidambaram.. but am not into this economics stuff.. thought provokin..
suren Says:
April 16th, 2008 at 7:44 amthe fact that this is a political gimmick, given the impending elections, is quite obvious.. no second thought about it….. in my opinion, this move could further damage rather than help… there are a number of other unanswered questions too…
to whom would the burden passed on ?
what about those who are indebted to other sources than banks ?
is indebtedness the only problem of indian agriculture?
but indeed a marvelous move to shut the mouths of all other parties opposition and support, under the guise of helping boost the agricultural sector